The Hot Springs star. (Hot Spings [Hot Springs], Dakota [Dakota Territory, i.e. S.D.]) 1886-189?, 1887-05-27
PACIFIC INQUIRY.
Further Investigation Of Jay Gould.

Nsw YoAk, May 1S.-Jay Gould resumed
the witness stand in the Pacific railroad In
vestigatien to-day. He presented q statement
Of his dealings in securities Of the Union
Pacific and Kansas Pacific railroad. He also
detailed q statement showing principal and
fntert ct by the consolidatcd mortgage arrange
mcnt, Is we'll rs q schedule of his dealings in
Kansas Pacific securities.
Commissioner Anderson desired to know
why 1t was to the advantage Of the consol.
tdsted company to have Kansas Pacific redeem
Denver Pacific bonds Instead of trustees Of
the consolidated mortgage.
Gould said: 1.-THE consolidated company
would make new bonds and throw 1t into an
outside trust, and the scheme which was
agreed upon was the only one that could have
been made to the benefit Of the company. Not
an Individual made . cent out Of this transac.
ton OF Denver Pacific stock, and I am very
In that cUfin."
Gould continued: Ny associates In Union
Pacific became alarmed within q month after
my Missouri Pacific purchase, and came on to
bind me to consolidation. ! signed a paper
agreeing to It between the time Of my resig.
nation as director of the Union Pacific, Jauu.
airy 10, 1880" Gould felt that consolidation
would be q great detriment to his interests.
The extension OF the Missouri Pacific 10 Den.
yer and San Francisco, as he contemplated,
would have destroyed the Union Pacific. He
had often thought of the rights of the gov
ernment, but after the passage Of the Thur
man bill he thought the government was
trying to
SQUEEZE MORE U OF A TuRNIp
than thHAn a TR--p-
build . road from Omaha to Ogden, just out
side the right-of-way, for t15,OOO,O0O. With
reference to the governmental claim, he made
an offer before the judiciary committee Of
the senate to pay each claim In cash at it's
present worth. Sydney Dillon was with him
when the offer was made.
Anderson questioned this, but Gould reit-
look no action, claiming his computation In
correct, and the interest did not mature with
the bond.
Gould then related the circumstance of his
resignation as director, giving as his reason
for restgning that he did not think 1t proper
for him to hold such q position while obliged
TO enter Into heavy transactions as an indi-
vidual.
Gould was examined ct length concerning
the branch road securities which he turned In
for consolidation stock, but nothing of par
ttcular interest was ELECTED.
ssFor my branch line securities / was paid
St,64i shares Of new consolidated stock, con.
tinued Gould, ssand the Kansas Pacific agree.
mcnt to pay me half In bonds and half in
stock Of their company was not adhered to.
I sold my stock at just what I put It in for,
and II there was a profit Of q 100000 realized
by the pool
LAWYERS MUST HAVE GOT IT.
I didn't receive . cent. AS regards my in.
terest in acquisition Of branch roads BY the
Union Pacific, I bought the Denver and South
Park road for g, 000 1000. The Utah Northern
l bought when It was very poor-paying prop.
erty. l built It up. When Dillon came tc
me and said I must turn 1t into Union Pacific
/ did so at its cost price to me. The Union
Pacific made between 100000 and e7O0,OOl
out OF this Transaction"
Witness said he thought the last visit he
made to Washington on Union Pacific buei.
pess was at the time the Thurman bill war
under consideration. He Afterwards remera-
bered, however, he was N Washington afte.
that. 81 know Of no occasion when stock.
bonds or securities Of che Union Pacific wersi
used to influence legislation ia favor OF that
road" defantly added the witness, .sand /
don't think such an occasion ever extsted.n
Gould's examination will be continued to.
morrow.